Hershey's (HSY, $233.41) sued over potentially harmful levels of metals in dark chocolates
The Hershey Company has been sued by a consumer in the U.S. for allegedly selling dark chocolates containing harmful levels of lead and cadmium.
Christopher Lazazzaro, who has filed a class action complaint at a federal court in Central Islip, New York, alleged that Hershey put out “deceptive and misleading” advertising and marketing campaign since it failed to disclose the amounts of lead and cadmium in its dark chocolates. Lazazzaro claimed in the suit that he would not have purchased or would have spent less on Hershey’s Special Dark Mildly Sweet Chocolate, Lily’s Extra Dark Chocolate 70% Cocoa and Lily’s Extreme Dark Chocolate 85% had Hershey's disclosed their metals content.
Lazazzaro seeks at least $5 million in damages through the potential class action lawsuit, including at least $500 per transaction under the law in New York.
The lawsuit comes a few weeks after Consumer Reports revealed the results of scientific testing of 28 dark chocolate bars for lead and cadmium. According to the study, while all 28 contained the heavy metals, 23 including chocolates from Dove, Godiva, Lindt and Trader Joe's contained potentially harmful levels of lead, cadmium or both for people who consume one ounce of chocolate a day. The magazine said that Hershey's Special Dark bar and Lily's 70% bar were high in lead, and Lily's 85% bar was high in lead and cadmium.
HSY in downward trend: price dove below 50-day moving average on May 25, 2023
HSY moved below its 50-day moving average on May 25, 2023 date and that indicates a change from an upward trend to a downward trend. In of 41 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on HSY as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HSY turned negative on May 11, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HSY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HSY advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
HSY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 335 cases where HSY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HSY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.221) is normal, around the industry mean (9.713). P/E Ratio (31.250) is within average values for comparable stocks, (35.023). HSY's Projected Growth (PEG Ratio) (4.433) is slightly higher than the industry average of (2.696). Dividend Yield (0.016) settles around the average of (0.091) among similar stocks. P/S Ratio (4.948) is also within normal values, averaging (6.731).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
